Electrocomponents sees growth in its revenues slow amid weak conditions

 
City A.M. Reporter
Electronic parts supplier Electrocomponents saw its revenue growth slow in the second quarter as weaker market conditions, particularly in electronics, dragged on sales.

The firm, which sells products ranging from batteries and cables to safety equipment, said second-quarter revenue grew eight per cent, compared with 14 per cent in the first, as growth in continental Europe and the US offset a slowdown in the UK.

Group revenue for the six months to the end of September grew by 11 per cent, with international business up 14 per cent and the UK up five percent.

Chief executive Ian Mason said: “The indicators are that things are getting tougher, if you look at the PMIs, the general economic uncertainty, but we are still growing very well at eight per cent in Q2.”

In September group revenue grew by around five per cent, with its international business, which represents 70 per cent of sales, up seven per cent. The UK declined by around one per cent.

In September, rival distributor Premier Farnell posted one per cent growth in its second-quarter profit but signalled a two per cent fall in August sales amid more signs of a global economic slowdown.

Electrocomponents, which operates in 32 countries and has a worldwide market share of around four percent, said e-commerce revenue grew by around 27 per cent.